COMPELLING VALUE-ADD RENOVATION OPPORTUNITY

Miracle Mile is an infill, supply-constrained submarket that generates strong demand for luxury rental product. The Preston offers investors a clear path to capture this demand through a targeted unit interior renovation program, with newer podium product within walking distance achieving rents $500–$900 above the Property’s in-place rents. The Preston is a boutique property whose physical attributes compete with new-build inventory, featuring nine-foot ceilings, in-unit laundry, and central air conditioning throughout. Standout details set it apart further, including vaulted ceilings in top-floor residences, architectural accent windows, fireplaces, dedicated dining rooms, and generously sized layouts. Current ownership has completed extensive common area and exterior improvements, leaving the unit interiors as the final component of the value-add thesis for a new investor. 12% of units are in original condition and the remaining units underwent a modest renovation program over 10 years ago, leaving significant runway for an incoming investor to modernize the units and meaningfully close the rent gap against newer, higher-priced product in the corridor.

BULLSEYE LOCATION WITH WALK SCORE OF 93

The Preston sits in the heart of Mid-Wilshire with a Walk Score of 93, placing residents within minutes of the city’s key job, retail, and cultural anchors. Beverly Hills, West Hollywood, Hollywood, and Century City are all within roughly four miles. The Property is across the street from Ralphs, two blocks from the newly reimagined Museum Row (anchored by the David Geffen Galleries at LACMA, which opened in April 2026, alongside the Academy Museum, the Petersen, and the La Brea Tar Pits), three blocks from major media and entertainment employers including CBS Radio, Sundance Institute, and SAG-AFTRA, and a short walk to The Grove, one of the country’s highest-performing outdoor retail centers. The opening of the new D Line stations is expected to further activate the Miracle Mile retail corridor, with the City already advancing placemaking initiatives including farmers markets, public plaza programming, and ground-floor activation.

IMMINENT TRANSIT TRANSFORMATION

The Preston Miracle Mile is positioned to capture one of the most significant transit-driven catalysts in Los Angeles. On May 8, 2026, Metro’s long-awaited D Line subway extension opens its first segment, delivering three new stations along the Wilshire corridor, including Wilshire/Fairfax and Wilshire/La Brea, which together bookend Miracle Mile and sit just minutes from the Property. After more than a decade of construction and a $9+ billion investment, residents will have direct, traffic free access to Koreatown, Downtown LA, and Beverly Hills, and, with subsequent phases, Century City and Westwood.

PREMIUM TENANT PROFILE

The Preston attracts a highly educated, upscale renter profile supported by strong household fundamentals and proximity to Southern California’s leading employment centers. Average household income at the Property exceeds $125K, reflecting residents with substantial purchasing power and rent-paying capacity. The community benefits from access to a deep and diverse employment base spanning technology, healthcare, finance, media, aerospace, and professional services, with major employers including Amazon, Apple, Boeing, Disney, Deloitte, Cedars-Sinai, Kaiser Permanente, Meta, NBCUniversal, Wells Fargo, UCLA, and Warner Bros. This concentration of nationally recognized employers underpins stable demand, supports long-term rental growth, and positions The Preston to attract and retain high-quality residents seeking convenience, connectivity, and economic resilience.

HIGH-BARRIER, SUPPLY-CONSTRAINED INFILL SUBMARKET 

Mid-Wilshire remains one of Los Angeles’ most difficult submarkets to build in, defined by scarce developable land, a highly restrictive entitlement process, and elevated construction costs that continue to constrain new supply. Over the past five years, the submarket has seen only two institutionally sized marketrate deliveries, together representing roughly 640 units, with just one additional project currently under construction. The limited pipeline that does exist targets a higher price point, positioning The Preston as the submarket’s premier value  alternative for renters seeking quality without the premium rents of newer delivery. The Preston offers investors a rare opportunity to acquire a well-located podium asset at a basis materially below today’s replacement cost. 

STRONG SUBMARKET FUNDAMENTALS

Mid-Wilshire stands out as one of the most stable and structurally durable submarkets in Los Angeles, with average asking rents commanding a ~20% premium to the Greater Los Angeles average, reflecting its premium positioning at the crossroads of Downtown, Hollywood, Koreatown, and the Westside. The submarket’s outperformance is anchored by an affluent renter base, evidenced by 206 units of positive absorption over the past 12 months and a stabilized vacancy rate of 5.8%, well below the Los Angeles market average of 9.8%. This durable demand profile is further reflected in Mid-Wilshire concessions running 3.1% below Downtown Los Angeles, 1.3% below Burbank, and 1.0% below Santa Monica. Together, premium pricing power, a deep and durable renter pool, and minimal concessions position Mid-Wilshire as one of the most durable submarkets in Los Angeles.